This Week in Credit Cards: APR Cap Updates and a Messy Bilt Launch

One thing that’s apparent to the CardRates team as we cover the most impactful credit card stories from day to day is that a lot can happen in a week. And by the time Friday rolls around, news from just a few days earlier can start to feel like a distant memory.

We want to keep credit card professionals connected to all the news with the potential to impact their world. That’s why we’re excited to bring you this column, which summarizes significant stories from the credit card ecosystem that grabbed our attention this week.

Earlier this month, President Donald Trump called for a 10% cap on credit card interest rates. And it didn’t take long for banks to voice their disapproval of the proposal.

Jamie Dimon, CEO of JPMorgan Chase, said a cap on card rates would bring economic disaster to the U.S., according to a Bloomberg report. 

“Our business, you know, we would survive it by the way,” Dimon said from the World Economic Forum. “In the worst case, you’d have to have a drastic reduction of the credit card business.”

Trump’s proposal for a cap on interest rates didn’t include specifics on what the next steps for credit card companies would look like. And updates since then haven’t clarified which direction issuers should turn.

Earlier this week, Kevin Hassett, Director of the National Economic Council, said that legislation around the cap isn’t necessary because banks will voluntarily issue cards with limits on interest rates.

But just a few days later, Trump called for Congress to involve itself in capping card rates, Axios reported.

Bilt rolled out a new credit card program, Bilt Card 2.0, this month. And while the cards may prove to be a hit with cardholders, the way the company communicated the update was anything but.

Customers turned to online forums to air their concerns over the confusing structure of Bilt Card 2.0. The online uproar caused the company’s CEO, Ankur Jain, to write an email to customers clarifying certain details of the new program.

Hopefully — for Bilt and its customers — this situation will turn out to be one where all is well that ends well.

Sen. John Fetterman (D-PA) and two of his colleagues introduced the Credit Card Fairness Act bill to bring a cap of $8 to credit card late fees.

“Big banks profiteering off people by charging $41 for a single late credit card payment is absolutely wrong,” Fetterman said in a press release. “At a time when people are struggling to get by, these late fees are only doing more harm.”

Credit card issuers may try to raise fees on cards to compensate for the revenue they will likely lose if a 10% cap on card interest rates moves forward. But Fetterman’s proposal may throw a wrench into those plans.

Fanatics, a sports merchandising company that also offers betting and gaming services, announced it will be further diversifying its offerings this year with a new credit card.

The card, which the company plans to bring to market in the spring, will present cardholders the opportunity to earn rewards.

“I think it’s going to be a game changer,” Rubin said in a recent Forbes report. “There’s never been a credit card that a sports fan can actually care about.”

With so much going on in the credit card space, be sure to check in with us often. We’ll track these stories as updates occur and continue to bring you insights and news shaping the industry.